JAKARTA (TheInsiderStories) – The Energy and Mineral Resources Ministry (EMR Ministry) on Tuesday (13/03) launched the ten-year Electricity Supply Business Plan for the period of 2018-2027, which shows a more moderate projection than in previous business plan.
The business plan is commonly used as a guideline for policymakers and industry players in developing future power plant projects.
Based on the electricity supply business plan, the government projects lower average electricity demand of 6.87 per cent per year, compared to 8.3 per cent set in the 2017-2026 business plan.
During the period, the government aims to develop 56,024 MW installed capacity power plants, lower than the previous figure of 78,000 MW set out in the 2017-2026 business plan.
The coal-fired power plants will remain the main source of electricity supply, contributing 54.4 per cent by 2025, followed by renewable energy at 23.0 per cent, gas 22.2 per cent and gasoline at 0.4 per cent.
Director for Strategic Procurement of the state electricity company PT Perusahaan Listrik Negara (PLN) Supangkat Iwan Santoso said the planned development of additional coal-fired power plants has been reduced to 28,000 MW during the ten-year period, lower than previous plan of 32,000 MW.
He said as much as 4,000 MW of planned coal-fired power plant development on the Java Island has been called off, in line with the government’s drive to halt development of coal-fired power plants in the densely populated island of Java.
Furthermore, the government will develop 65,855 kilometers of the transmission network, substations at a volume of 151,424 MVA, distribution network along 526,390 kilometers and distribution substation of 50,216 MVA.
The EMR Minister Ignasius Jonan said at the press conference that under the latest business plan, the additional coal-fired power plants is set 5,000 MW lower than the figure set in the 2017-2026 business plan, gas power plant cut by 10,000 MW, hydropower plant was set lower by 1,000 MW and geothermal power plant was set 1,000 MW lower.
Jonan said the lower power capacity was decided in line with expected lower annual electricity demand growth.
Meanwhile, the installed capacity of renewable energy is raised to 2,000 MW higher than a capacity of 1,200 MW set in previous year’s business plan.